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DanielleElmas [232]
1 year ago
10

Moneysaver's Bank offers a savings account that 7interest compounded continuouslyIf Donna deposits 2200, how much will she have

in the account after five years, assuming she makes no withdrawals? Do not round any intermediate computations, and round your answer to the nearest cent

Mathematics
1 answer:
OverLord2011 [107]1 year ago
3 0

For an initial amount deposited P and an annual interest rate r, the total amount T in the account after t years is given by:

T=P(1+r)^t

For P = $2200, r = 7% and t = 5 years, we have:

\begin{gathered} T=2200(1+0.07)^5 \\ T=\text{ \$3,085.61} \end{gathered}

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